2011 Federal Tax Credits for Consumer Energy Efficiency
NOTE: Tax credits that were 30% up to $1,500 EXPIRED on December 31, 2010. New tax credits were passed, but at lower levels. Summary of changes.Please note, not all ENERGY STAR qualified products qualify for a tax credit. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.
What You Need to Know
- What is included in the 2011 Federal Tax Credit?
- How do I apply for my Federal Tax Credit?
What is included in the Tax Credit?
- Tax Credit:
- 10% of cost up to $500 or a specific amount from $50 - $300
- Expires:
- December 31, 2011
- Details:
- Must be an existing home & your principal residence. New construction and rentals do not qualify.
Biomass Stoves
- Biomass stoves burn biomass fuel to heat a home or heat water. Biomass fuel includes agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.
Tax Credit Amount: $300
Requirements
Thermal efficiency rating of at least 75%More Information
Heating, Ventilating, Air Conditioning (HVAC)
Advanced Main Air Circulating Fan
An Advanced Main Air Circulating Fan is an efficient fan, or blower motor which blows the air that your furnace heats up through the duct system.
Tax Credit Amount: $50
Requirements
Must use no more than 2% of the furnace's total energy.More Information
Air Source Heat Pumps
Heat pumps offer an energy-efficient alternative to furnaces and air conditioners in moderate climates. Like your refrigerator, heat pumps use electricity to move heat from a cool space into a warm, making the cool space cooler and the warm space warmer. During the heating season, heat pumps move heat from the cool outdoors into your warm house; during the cooling season, heat pumps move heat from your cool house into the warm outdoors. Because they move heat rather than generate heat, heat pumps can provide up to 4 times the amount of energy they consume.
Tax Credit Amount: $300
Requirements
Split Systems:
HSPF ≥ 8.5
EER ≥ 12.5
SEER ≥ 15
Package systems:
HSPF ≥ 8
EER ≥ 12
SEER ≥ 14
See Definitions.More Information
Central Air Conditioning (CAC)
The best way to find tax credit eligible CACs is to ask your HVAC Contractor (Heating Ventilation and Air Conditioning). To verify tax credit eligibility, ask your HVAC contractor to provide the Manufacturer Certification Statement for the equipment you plan to purchase. Or, search the Manufacturer's website.
Tax Credit Amount: $300
Requirements
Split Systems:
SEER ≥ 16
EER ≥ 13
Package systems:
SEER ≥ 14
EER ≥ 12
See definitions.More Information
Gas, Propane, or Oil Hot Water Boiler
These are heating units that use water circulated throughout the home in a system of baseboard heating units, radiators, and/or in-floor radiant tubing.
Tax Credit Amount: $150
Requirements
AFUE ≥ 95
Tax Credit includes installation costs.
See definitions.More Information
Natural Gas, Propane or Oil Furnace
A furnace uses the combustion of fuel and air to create heat.
Tax Credit Amount: $150
Requirements
AFUE ≥ 95More Information
Insulation
- Adding adequate insulation is one of the most cost-effective home improvements that you can do.
Tax Credit Amount: 10% of the cost, up to $500
Requirements
Typical bulk insulation products can qualify, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place.
Products that air seal (reduce air leaks) can also qualify, as long as they come with a Manufacturers Certification Statement, including:
- Weather stripping
- Spray foam in a can, designed to air seal
- Caulk designed to air seal
- House wrap
See definitions.
Roofs (Metal & Asphalt)
- Qualified roof products reflect more of the sun's rays, which can lower roof surface temperature by up to 100F, decreasing the amount of heat transferred into your home.
Tax Credit Amount: 10% of the cost, up to $500
Requirements
"Metal roofs with appropriate pigmented coatings" and "asphalt roofs with appropriate cooling granules" that also meet ENERGY STAR requirements.
Tax Credit does NOT include installation costs.More Information
Water Heaters (non-solar)
Gas, Oil, Propane Water Heater
Water heating can account for 14%–25% of the energy consumed in your home.
Tax Credit Amount: $300
Requirements
Energy Factor ≥ 0.82 OR a thermal efficiency of at least 90%.
See definitions.More Information
Electric Heat Pump Water Heater
Water heating can account for 14%–25% of the energy consumed in your home.
Tax Credit Amount: $300
Requirements
Energy Factor ≥ 2.0More Information
Windows & Doors
Windows, Doors, Skylights
Energy efficient windows, doors and skylights can reduce energy bills.
Tax Credit Amount: 10% of the cost, up to $500, but windows are capped at $200.
Requirements
Must be ENERGY STAR qualified.
You do not have to replace all the windows/doors/skylights in your home to qualify. And it doesn't need to be a replacement either - installing a new window where there wasn't one previously (like in an addition) qualifies.
Tax Credit does NOT include installation costs.More Information
- Tax Credit:
- 30% of cost with no upper limit
- Expires:
- December 31, 2016
- Details:
- Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
Geothermal Heat Pumps
- Geothermal heat pumps are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. Because they use the earth's natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available.
Requirements
Closed Loop:
EER ≥ 14.1
COP ≥ 3.3
Open Loop:
EER ≥ 16.2
COP ≥ 3.6
Direct Expansion:
EER ≥ 15
COP ≥ 3.5
Tax Credit includes installation costs.
See definitions.
Small Wind Turbines (Residential)
- A wind turbine collects kinetic energy from the wind and converts it to electricity that is compatible with a home's electrical system.
Requirements
Must have a nameplate capacity of no more than 100 kilowatts.
Tax Credit includes installation costs.More Information
Solar Energy Systems
Solar Water Heaters
Solar water heaters come in a wide variety of designs, all including a collector and storage tank, and all using the sun's thermal energy to heat water. Solar water heaters are typically described according to the type of collector and the circulation system.
Requirements
At least half of the energy generated by the "qualifying property" must come from the sun. The system must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.
Note: The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling.
Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.
Tax Credit includes installation costs.Solar Panels (Photovoltaic Systems)
Solar Panels or Photovoltaic Systems are solar cells that capture light energy from the sun and convert it directly into electricity.
Requirements
Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.More Information
- Tax Credit:
- Credit Details: 30% of the cost, up to $500 per .5 kW of power capacity
- Expires:
- December 31, 2016
- Details:
- Existing homes & new construction qualify. Must be your principal residence. Rentals and second homes do not qualify.
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